Successful marketing strategies for any housing management organization focus on both the direct and indirect amenities offered by a specific property, especially when targeting millennials. The exceptional student experience that housing management organizations strive to achieve also creates a bridge between the facility, the campus, and the surrounding area that must be safe, reliable, and convenient. Developing and managing a structured transportation service plan that focuses on how to maximize service, minimize cost, and control external concerns like liability management can help make this value-added service much less of a burden on property managers.

When a property manager decides that they are going to offer transportation services to their residents, they incur a range of financial, legal, and operational considerations they are often not fully prepared for. First and foremost is the capital investment associated with purchasing vehicles and the operating costs associated with operating and maintaining them. A very close second is finding enough of the “right” people to drive the vehicles while ensuring students are informed of whether the bus is on schedule or not. Finally, there are the liability questions associated with moving residents to and from your facility. Each of these issues, and the myriad of other concerns, are relevant whether you have one or one hundred vehicles. And managing this “monster” is frequently the biggest thorn in the side of a property manager.

It is only when a van or shuttle isn’t running on schedule, or at all, that we realize how complex even a single shuttle system is and how valuable the service is to the residents. Figuring out how best to ensure the vehicles run on-time is an important consideration to the overall satisfaction with a property. A viable alternative to support effective management of the operation is the use of a transportation management organization (TMO). A strong TMO should be able to assist you in all aspects of the daily activities of your shuttle service. This should include:

Supporting the development of a maintenance management program to promote maximum availability of each vehicle

Acquiring and implementing technology that allows residents to know whether the service is running on-time and that allows you to minimize the cost of what is typically a non-revenue generating asset

Creating a training program that ensures drivers operate vehicles safely and minimize the organization’s exposure to operating risk

With the right partner, your property manager can focus on managing a property, increasing occupancy, and enhancing the resident experience.

When you are looking for a TMO partner, it is important to ensure that the organization has an understanding of the demands associated with your type of transportation services. Recognizing that transporting students is not the same as transporting packages or cargo would seem self-evident, but often times organizations approach the two problems the same way. This typically results in high costs, poor service, and significant liability exposure due to a lack of attention to key safety-related fundamentals. The right TMO can ensure that you provide safe, reliable, cost-effective, and value-added services to your residents.

Engaging a TMO begins by asking yourself the critical question: “What kind of service are we looking to provide?” Like any other professional service, establishing a defined scope will ensure that both you and the TMO clearly understand what you are trying to accomplish, and by when. There is a major cost and operational difference if you want to provide 24-hour services versus something more in line with the campus class schedule of approximately 6AM to 11PM. A clear definition of those hours of service can be a major factor in your ability to control the cost of this service, and a knowledgeable TMO can help you understand the pros and cons of different options.

Additionally, there is a need to focus intently on the condition of your fleet. The vehicles your residents ride are a reflection of the quality of your core property assets. Therefore, it is important to develop a replacement and financing schedule that minimizes the total cost of ownership of the asset. Developing a sustainable replacement strategy also ensures you are managing the liability exposure associated with old assets that might frequently breakdown and create dangerous operating conditions for your residents. Finding a TMO that can help you develop and finance a sustainable replacement strategy is an important element in an effective risk management and cost containment plan, while offering the added benefit of allowing your attractive, new(er) vehicles to serve as a passive marketing tool for your property.

Two critical, though less obvious, considerations when you are engaging a TMO is their ability to bring in temporary resources and the breadth of their service offerings. The ability to call on necessary resources in times of peak demand is a strong indication as to how well they will respond when the inevitable service disruption occurs. Identifying a partner that has the resources and relationships to ensure that you can continue to provide services even if there are vehicle breakdowns, driver shortages, adverse weather, or unexpected campus events will give you the confidence that your core business (and your bottom line) won’t be negatively impacted by a service you know you need but may not want to have.

Transportation is often at or near the top of the list of things property managers love to hate. How many drivers do we need? How do we train them? What type of license and which endorsements do they need? What if we have different types of vehicles – are the drivers one-size-fits-all? Answering one of these questions incorrectly can significantly impact service delivery, create an unsafe environment for the transportation system, and expose the property and investors to an unnecessarily high level of risk. The constant demands, the significant risk exposure, and the complexities of making things run on-time often distract individual managers and their staff from their core duties for days and even weeks at a time. However, there are options that can make the misery a lot less miserable. Partnering with a professional transportation management organization can reduce the stress and financial strain of providing your residents with a service they expect and that makes your property standout.

Doug Martin is President of TransPar. He and his team manage transportation for the national leader in private student housing, The Scion Group. For more on why Scion exited the transportation business and handed their transportation operations to TransPar, click here.

Richmond, Va. — Campus Apartments has acquired The Collection Midtown, a portfolio of 20 apartment buildings located within Richmond’s Fan and Museum District near Virginia Commonwealth University, for $31 million.

Rexburg, Idaho — Greystone has provided a $28.2 million Fannie Mae DUS loan for the acquisition of Northpoint Apartments, a student housing property located near Brigham Young University-Idaho in Rexburg.

Dallas — Student Housing Business and the InterFace Conference Group are pleased to announce the launch of a new niche conference — SHB LeaseCon: A Social Media, Digital & Traditional Marketing Boot Camp —…

Morgantown, W.V. — Highland Realty Capital has arranged a $10.3 million bridge loan for The Ridge at Morgantown, a 644-bed student housing community located near West Virginia University in Morgantown.

Orlando, Fla. — Preferred Apartment Communities Inc. (PAC) has acquired The Retreat at Orlando, an 894-bed, cottage-style student housing community located near the University of Central Florida in Orlando.

Champaign, Ill. — Gilbane Development Company has broken ground on Octave, a 538-bed student housing community located two blocks from the University of Illinois at Urbana-Champaign campus in Champaign.

Lafayette, La. — The University of Louisiana at Lafayette and RISE: A Real Estate Company have broken ground on a 281,000-square-foot mixed-use development located on the university’s campus in Lafayette.

Athens, Ga. — HFF has arranged the $30.4 million recapitalization of River Club Apartments and River Club Townhomes, two student housing communities operated as a single property near the University of…

Fairhope, Alabama — Leeman Covey has announced his retirement as president and CEO of the Collegiate Housing Foundation, a non-profit organization based in Fairhope, Alabama, that works to assist colleges and…

Toronto and Chicago — In an effort to expand its global investment management platform, Colliers International Group Inc. (NASDAQ: CIGI) has agreed to acquire 75 percent of Harrison Street Real Estate…

College Station, Texas — Preferred Campus Communities, a wholly owned subsidiary of Preferred Apartment Communities, has acquired The Tradition, an 808-bed student housing community located one block away from the Texas…

Pittsburgh — Duquesne University has finalized the sale of Brottier Hall, an apartment-style residence hall located on the university’s campus in Pittsburgh, to Radnor Property Group and Harrison Street Real Estate…

Washington, D.C. — Howard University and Corvias have announced the completion of renovations at Howard Plaza Towers East, a 1,163-bed residence hall located on the university’s campus in Washington, D.C.

Austin, Texas — Asset Campus Housing has been awarded management of Ballpark Apartments, which consists of several student communities in central Austin, including Ballpark East, Ballpark South and Ballpark West.

Atlanta — The University System of Georgia has released a request for qualified concessionaires (RFQC) for a student housing public-private partnership for seven University System of Georgia institutions.

Sacramento, Calif. — GMH Capital Partners and AGC Equity Partners have announced plans for The Academy on 65th, a 305-bed student housing community located near California State University – Sacramento.

Miami — The pedestrian bridge set to connect University Bridge Residences — a student housing development currently underway by a joint venture including University Developments — to Florida International University…

Atlanta — Summit Contracting Group, a multifamily general contractor, has started construction on Theory West Midtown, a student housing community located near the Georgia Institute of Technology in Atlanta.

Chicago — Peak Campus has been awarded management of The Flats at East-West University, a 240-bed, on-campus student housing community located at East-West University in Chicago’s South Loop neighborhood.

Hyattsville, Md. — Dubai-based Safanad Limited, in partnership with Miami-based Vie Holdings, has acquired The Towers at University Town Center, a student housing community in Hyattsville, for $69.5 million.

Bloomington, Ind. — Pillar Financial, a division of SunTrust Bank, has originated a $14.1 million refinancing for Urban Station, a 53-unit student housing community located near the University of Indiana…

Philadelphia — A joint venture between Harrison Street Real Estate Capital and Brandywine Realty Trust has sold Evo at Cira Centre South, an 850-bed student housing community located in Philadelphia’s…

New Brunswick, N.J. — FourPoint Investments and BlueGate Partners have arranged the sale of Rockoff Hall Apartments, a 674-bed student housing community located within walking distance of Rutgers University in…

Chicago — ACC and the University of Illinois at Chicago have broken ground on a living/learning community composed of a two-story academic classroom building and a 10-story undergraduate residence hall.

Charlotte, N.C. — A joint venture between The Preiss Co. and an undisclosed private investment group has acquired two student housing communities located near the University of North Carolina-Charlotte.

Greenville, N.C. — A joint venture between FM Capital, Gottlieb Family Partners and AMAC Holdings has acquired Captain’s Quarters, a 1,692-bed student housing community located near East Carolina University in…

Atlanta — A joint venture between Landmark Properties and CityLife Development Partners has acquired a 1.1-acre site near the Georgia Institute of Technology in Atlanta for the development of a 28-story…